Oral Answers to Questions

Andrew Pelling: Newsquest took the lead in removing sex industry adverts from its local newspapers, recognising that such adverts support a lot of this human trafficking. What can be done to encourage other news organisations to encourage their local newspapers to follow such a good example, particularly when advertising revenue is falling? Newsquest really took the lead on this issue.

Jacqui Smith: The hon. Gentleman raises an important point. My hon. Friend the Police Minister and my right hon. and learned Friend the Minister for Women and Equality met the Newspaper Society precisely to try to encourage newspapers not to carry the sorts of adverts that promote and expect a demand for women who have been trafficked into this country. Such a demand is abhorrent, and should not be advertised.

Alan Campbell: Even the Minister of State, Home Department, my hon. Friend the Member for Oldham, East and Saddleworth (Mr. Woolas) hopes that my right hon. Friend would want to take the drivers out before crushing the cars.  [ Laughter. ] A range of measures is available, and we would encourage the police and the local authority to ensure that all those powers are not only available, but used. Of course I would be willing to meet my right hon. Friend to discuss this important matter.

James Brokenshire: When drinking banning orders were launched to curb drink-related antisocial behaviour, the then Police Minister, the right hon. Member for Salford (Hazel Blears), said that they could have
	"more impact on young people than many of the other things that we pass in the House."—[ Official Report, 14 November 2005; Vol. 439, c. 723.]
	However, three years later the current Minister has admitted that they still have not been brought into effect and that he will be taking stock of whether there is any need for them at all. Will the Minister confirm that drinking banning orders will be scrapped, and indicate what other measures he now considers to be unworkable, unnecessary or otherwise surplus to requirements?

Jacqui Smith: It is obviously important that local police forces, such as the Essex police force, make the appropriate decisions, but I am clear—as is the ACPO—that we must reach a position whereby, alongside crime mapping, we provide much better information to local people and at least monthly opportunities for them to engage with their neighbourhood policing teams, which are now in every neighbourhood throughout the country, to know what is going on and what, together, they can do about it.

Phil Woolas: I thank the hon. and learned Gentlemen for the question. There has been much debate in the House, including last Tuesday, although he did not take part, about the population trend that the Office for National Statistics published and that my right hon. Friend the Member for Birkenhead so articulately highlighted. It identifies the total population, including the impact of migration. The Government's point, with which my right hon. Friend agrees, is that the points-based system allows for controlling migration for workers in a method that ensures that the trends do not come to fruition. That is the policy.

Jacqui Smith: I think that it is right to say that the vast majority of young people—over 18, of course—drink alcohol responsibly, but there is a minority for whom the way in which alcohol is promoted and their lack of understanding of its impact have had a detrimental effect. That is why we, as a Government, have worked hard, through the "Know your Limits" advertising campaign and through the work of my colleagues in the Department of Health, to bring home to people the potential danger that irresponsible drinking can cause. People need to behave responsibly both for their own health and on account of the impact of their behaviour on the wider community, and we will continue to make that case.

Mr. Speaker: With this it will be convenient to discuss the following: amendments (a) to (j) to Government new clause 9.
	Government new clause 13— Advice by boards or their Commissioners.
	Government new clause 14— Consideration of proposed schemes by boards.
	Amendments (a) to (c) thereto.
	Government new clause 15— Appeals against the making of schemes for areas in England.
	Amendments (a) to (d) thereto.
	Government new clause 16— Exempt continuation proposals.
	Government new clause 17— Continuation of schemes for areas in England: procedure.
	Government new clause 18— Continuation of schemes for areas in Wales: procedure.
	Government new clause 19— Exemption from s.132 for specific variations directed by Transport Tribunal.
	New clause 6— Approval of proposed scheme—
	'In the TA 2000, for section 126 (approval of proposed scheme) substitute—
	"125A Consideration of proposed scheme
	(1) If, having complied with section 125, the authority or authorities wish to proceed with the proposed scheme, they must apply to the appropriate consulting authority for its consideration.
	(2) In this Part "the appropriate consulting authority" means—
	(a) where the area to which the scheme relates is in England, an approvals board for England; and
	(b) where the area to which the scheme relates is in Wales, the Welsh Ministers.
	(3) The application must include—
	(a) the authority's or the authorities' reasons for wishing to make the scheme; and
	(b) such other information as the appropriate consulting authority may reasonably require.
	(4) The appropriate consulting authority shall give its opinion on the proposed scheme within 28 days of the latter of—
	(a) the application for its opinion; and
	(b) the receipt of any further information requested under subsection (3)(b).
	(5) The appropriate consulting authority may recommend modifications to the proposed scheme.
	(6) Following receipt of the appropriate consulting authority's opinion, the authority or authorities must take that opinion into account and may then proceed to—
	(a) make the proposed scheme;
	(b) discontinue the proposed scheme; or
	(c) make the proposed scheme with modifications.
	(7) If the authority or authorities propose to make the scheme with modifications, they must first consult such of the persons they consulted under section 125(3) as would in their opinion be affected by those modifications."'.
	New clause 7— Approval of proposed scheme (No. 2)—
	'(1) Section 126 of the TA 2000 (approval of proposed scheme) is omitted.
	(2) After section 125 of the TA 2000 (notice and consultation requirements) insert—
	"126 Consideration of proposed scheme
	(1) In this Part "the appropriate consultation authority" means—
	(a) where the area to which the scheme relates is in England, a consultation board for England; and
	(b) where the area to which the scheme relates is in Wales, the Welsh Ministers.
	(2) Where the area to which the scheme relates is in England—
	(a) upon receipt of a notice under section 125(1)(a), the senior traffic commissioner shall within 7 days of receipt of the notice appoint a consultation board to give its response on the proposed scheme; and
	(b) once appointed under paragraph (a), the consultation board shall begin its consideration.
	(3) Where the area to which the scheme relates is in Wales, the Welsh Ministers shall begin their consideration upon receipt of a notice under section 125(1)(a).
	(4) The appropriate consultation authority shall consider whether the proposed scheme as a whole satisfies the criteria set out in section 124(1).
	(5) In carrying out its consideration, the appropriate consultation authority shall consider—
	(a) the consultation document produced by the authority or authorities in accordance with section 125,
	(b) any information received by the appropriate consultation from the persons listed at section 125(3),
	(c) any other information that the appropriate consultation authority may reasonably request from the authority or authorities proposing the scheme, and
	(d) any other information that the appropriate consulting authority obtains from any other source which the consulting authority deems to be relevant.
	(6) If the appropriate consultation authority believes that any of the criteria set out in section 124(1) are not satisfied, it shall give reasons for that belief in its response and may suggest ways in which the scheme could be modified so as to ensure that the criteria are satisfied.
	(7) In giving its response, the appropriate consultation authority may recommend modifications to the proposed scheme.
	(8) Following receipt of the appropriate consultation authority's response, the authority or authorities proposing the scheme shall forward the response to the persons listed at section 125(3).
	(9) The authority or authorities proposing the scheme must take that response into account and may then proceed to—
	(a) make the proposed scheme;
	(b) discontinue the proposed scheme; or
	(c) make the proposed scheme with modifications.
	(10) If the authority proposes or the authorities propose to make the scheme with modifications, it or they must first consult such of the persons it or they consulted under section 125(3) as would in its or their opinion be affected by those modifications."'.
	New clause 8— Review of validity of schemes—
	'(1) After section 126B of the TA 2000 insert—
	"126C Review of validity of schemes: areas in England
	(1) This section applies where the area to which the proposed scheme relates is in England.
	(2) If any person who was consulted by the authority or authorities in accordance with section 125(3) or the consultation board desires to question the validity of a quality contracts scheme, or of any provision contained in it, on the ground—
	(a) that it is not within the powers of this Act; or
	(b) that any of the relevant requirements have not been complied with in relation to that scheme,
	that person or the board may, within the period of 42 days beginning with the day on which the notice is required by section 127(8) is published, make an application for the purpose to the Transport Tribunal.
	(3) On any such application, the Transport Tribunal—
	(a) may suspend the operation of the quality contracts scheme, or of any provision contained in it, either generally or in part, until the final determination of the proceedings, and
	(b) if satisfied that the quality contracts scheme or any provision contained in it is not within the powers of this Act, or that the interests of the applicants have been substantially prejudiced by a failure to comply with any requirement imposed by or under this Act, may quash the scheme or any provision contained in it, either generally or in part.
	(4) Subject to subsections (2) and (3) and without prejudice to any right of appeal from the Transport Tribunal, a quality contracts scheme shall not, either before or after it has been made, be questioned in any legal proceedings whatever.
	(5) Notwithstanding the provisions of paragraph 8 of Schedule 4 to the TA 1985, the jurisdiction of the Transport Tribunal in relation to this section shall be limited to the consideration of the matters set out in subsection (2).'.
	Amendment No. 5, in clause 19, page 18, line 15, after 'relates', insert
	'which are greater than those that would pertain under existing arrangements,'.
	Amendment No. 6, page 18, line 22, leave out paragraph (e) and insert—
	'(e) there are shown to be no adverse effects of the proposed scheme on operators or on persons living or working in the area to which the proposed scheme relates'.
	Government amendment No. 163
	Amendment No. 30, page 18, line 27, leave out subsection (3) and insert—
	'(3) Leave out subsection (2)(b) and insert—
	"(2) (b) have consulted the appropriate consulting authority in accordance with section 125A"'.
	Amendment No. 65, page 18, line 27, leave out subsection (3) and insert—
	'(3) In subsection (2) omit paragraph (b) and the word "and" before it.'.
	Government amendment No. 121.
	Amendment No. 66, page 18, line 39, at end insert—
	'(6) After subsection 13 insert—
	"(14) For the purposes of determining whether or not the criteria set out in subsection (1) would be satisfied by any proposed scheme, an authority or authorities may cause to be held such inquiries and in such manner as it or they think fit."'.
	Amendment No. 67, in clause 20, page 18, line 43, leave out from beginning to end of line 2 on page 19 and insert—
	'(2) For subsection (1) substitute—
	"(1) Prior to making a quality contracts scheme the authority or authorities must—"'.
	Amendment No. 68, page 19, line 2, at end insert—
	'( ) Give notice of the proposal to make the scheme—
	(a) if the area to which the proposed scheme relates is in England, to the senior traffic commissioner; or
	(b) if the area to which the proposed scheme relates is in Wales, to the Welsh Ministers,'.
	Amendment No. 7, page 19, line 3, leave out 'in such a manner as they think fit'.
	Amendment No. 8, page 19, line 6, after 'subsection (3)', insert—
	'(c) supply a copy of that document to—
	(i) the chief fire officer for each fire area covering the whole or part of that area;
	(ii) the head of the local ambulance service for each area covering the whole or part of that area;
	(iii) all persons living within 150 metres of any part of the route as specified in the proposed scheme;
	(iv) representatives of local groups representing disabled people'.
	Government amendments Nos. 164 to 166.
	Amendment No. 69, page 19, line 30, at end insert—
	'(f) a statement that all consultees may copy any comments they wish to make to the appropriate consultation authority, setting out details of the appropriate consultation authority.'.
	Government amendments Nos. 167 to 169.
	Amendment No. 70, page 20, line 1, leave out clause 21.
	Government amendments Nos. 170 to 177.
	Amendment No. 71, in clause 22, page 20, line 21 , leave out 'approvals' and insert 'consultation'.
	Government amendment No. 178
	Amendment No. 72, page 20, line 22, leave out 'an approvals' and insert 'a consultation'.
	Government amendments Nos. 179 and 180.
	Amendment No. 9, page 21, line 7, leave out subsection (8).
	Government amendments Nos. 181 to 186.
	Amendment No. 73, in clause 23, page 21, line 16, leave out 'approvals' and insert 'consultation'.
	Government amendments Nos. 187 to 189.
	Amendment No. 74, page 21, line 19, leave out 'approvals' and insert 'consultation'.
	Government amendments Nos. 190 and 191.
	Amendment No. 75, page 21, leave out line 24.
	Amendment No. 31, page 21, line 24, leave out 'approval' and insert 'consideration'.
	Amendment No. 76, page 21, line 25, leave out from beginning to 'to' in line 26 and insert
	'provision for a confirmation that the consultation board is considering a proposed scheme'.
	Amendment No. 77, page 21, line 29, leave out 'an application for approval has been received' and insert
	'the consultation board is considering a proposed scheme'.
	Amendment No. 32, page 21, line 29, leave out 'approval' and insert 'consideration'.
	Amendment No. 78, page 21, line 32, leave out 'application' and insert 'proposed scheme'.
	Amendment No. 23, page 21, line 32, at end insert—
	'(e) provision that the role of the Approvals Board will be restricted to verifying that the authority seeking approval has followed the proper procedures for making a Quality Contract Scheme.'.
	Amendment No. 79, page 21, line 34, leave out from 'that' to end of line 35 and insert
	'any consultation board for England should normally give its response on any proposed scheme.'.
	Government amendments Nos. 192 and 193.
	Amendment No. 33, page 21, line 35, leave out 'approval' and insert 'consideration'.
	Government amendment No. 194.
	Amendment No. 80, page 21, line 36, leave out 'an approvals' and insert 'a consultation'.
	Government amendment No. 195.
	Amendment No. 34, page 21, line 37 , leave out 'reach its decision' and insert 'publish its recommendations'.
	Amendment No. 81, page 21, line 37, leave out 'reach its decision' and insert 'give its response'.
	Amendment No. 82, page 21, line 37, leave out 'on any application for approval'.
	Amendment No. 35, page 21, line 38, leave out 'approval' and insert 'consideration'.
	Amendment No. 83, page 21, line 38, leave out 'approval' and insert 'a response'.
	Government amendment No. 196
	Amendment No. 84, page 21, line 39, leave out 'an approvals' and insert 'a consultation'.
	Amendment No. 36, page 21, line 39, leave out 'reach its decision' and insert 'publish its recommendations'.
	Amendment No. 85, page 21, line 39, leave out 'reach its decision' and insert 'give its response'.
	Amendment No. 37, page 21, line 40, leave out 'approval' and insert 'consideration'.
	Amendment No. 38, page 21, line 42, leave out 'reached its decision' and insert 'published its recommendations'.
	Amendment No. 86, page 21, line 42, leave out 'reached its decision' and insert 'given its response'.
	Amendment No. 39, page 21, line 44, leave out 'reach a decision' and insert 'publish the recommendations'.
	Amendment No. 87, page 21, line 44, leave out 'reach a decision' and insert 'give a response'.
	Amendment No. 40, page 22, line 1, leave out 'reach its decision' and insert 'publish its recommendations'.
	Amendment No. 88, page 22, line 1, leave out 'reach its decision' and insert 'give its response'.
	Government amendment No. 197
	Amendment No. 89, page 22, line 7, leave out 'made the application for approval' and insert 'is or are proposing the scheme'.
	Amendment No. 41, page 22, line 8, leave out 'approval' and insert 'consideration'.
	Government amendments Nos. 198 and 199.
	Amendment No. 42, page 22, leave out lines 14 and 15 and insert
	' "application for consideration" means an application under section 125A for consideration of a quality contracts scheme;'.
	Government amendments Nos. 200 to 203.
	Amendment No. 91, clause 24, page 22, line 26, leave out 'approvals' and insert 'consultation'.
	Amendment No. 92, page 22, leave out lines 27 to 35.
	Amendment No. 93, page 23, line 34, leave out '126C(8)' and insert '126C(5)'.
	Government amendment No. 204
	Amendment No. 44, in clause 25, page 23, line 40, leave out 'applications for approval' and insert 'Quality Contract schemes'.
	Amendment No. 45, page 24, leave out line 3 and insert 'authority proposing to make the scheme'.
	Amendment No. 46, page 24, line 5, leave out paragraph (a).
	Amendment No. 47, page 24, line 28, leave out ', or to the approvals board for England,'.
	Amendment No. 48, page 24, line 34, leave out paragraph (b).
	Amendment No. 49, page 24, line 40, leave out paragraph (e).
	Amendment No. 50, page 25, line 3, leave out subsection (4).
	Amendment No. 51, page 25, line 8, leave out 'or (e)'.
	Amendment No. 95, clause 26, page 25, line 13, at end insert—
	'(1A) For the heading "Making of a scheme" substitute "Requirements of a quality contracts scheme".
	(1B) Subsection (1) is omitted.'.
	Government amendment No. 205
	Amendment No. 96, page 25, line 14, leave out subsections (2) to (4).
	Amendment No. 52, page 25, line 14, leave out subsection (2), and insert—
	'(2) Leave out subsection (1) and insert—
	"(1) Once the appropriate national authority considers the scheme the authority or authorities who proposed it may make it, with or without modifications, at any time not later than 6 months after the date on which the recommendations of the approvals board are published."'.
	Amendment No. 53, page 25, line 24, leave out 'approvals board for England' and insert 'authority proposing to make the scheme'.
	Government amendment No. 206.
	Amendment No. 97, page 26, line 15, leave out 'periods mentioned in subsection (1), (1A) or' and insert 'period mentioned in subsection'.
	Government amendments Nos. 207, 208, 122, 123 and 209 to 221..
	Amendment No. 54, in clause 30, page 28, line 36, leave out 'approval' and insert 'consulting'.
	Amendment No. 55, page 28, line 37, leave out 'section 126' and insert 'section 125A'.
	Amendment No. 56, page 28, line 40, leave out 'approval' and insert 'consulting'.
	Government amendments Nos. 222 and 223.
	Amendment No. 57, in clause 31, page 29, leave out line 4 and insert
	'(1) Section 125A (consideration of proposed scheme)'.
	Government amendments Nos. 224 to 235.
	Amendment No. 58, in clause 32, page 31, line 28, leave out 'approval by appropriate approval' and insert 'consulting by appropriate consulting'.
	Government amendments Nos. 236 and 237.
	Amendment No. 59, in clause 33, page 31, line 39, leave out from second 'the' to 'as' in line 41 and insert
	'authority proposing the continuation of the scheme'.
	Government amendments Nos. 238 to 242.
	Amendment No. 60, in clause 34, page 32, line 19, leave out paragraph (a) and insert—
	'(a) leave out paragraph (a) and insert—
	"(a) requires the consideration of the scheme by the consulting authority which published recommendations on the scheme in accordance with section 125A, and".'.
	Government amendments Nos. 243 to 254.
	Amendment No. 61, in clause 35, page 33, line 25, leave out paragraph (c).
	Government amendments Nos. 255 and 256.
	Amendment No. 62, in clause 36, page 33, line 30, at end insert—
	'(2A) In subsection (1)(b) leave out "approval" and insert "consideration"'.
	Government amendments Nos. 257 and 258.
	Amendment No. 63, page 33, line 33, at end insert—
	'(3) (b) in paragraph (e) leave out "approval" and insert "consideration"'.
	Government amendments Nos. 259 to 263, 124 and 125 to 138.
	Amendment No. 98, in clause 61, page 55, line 9, leave out from 'it' to end of line 10 and insert—
	'(a) it provides that a PTE shall cease to have the power under section 10(1)(viii) of the TA 1968; or
	(b) it would prevent the carrying of passengers by road by the PTE in pursuance of the power inserted into the TA 1968 by subsection (7).'.
	Amendment No. 99, page 55, leave out line 15.
	Amendment No. 100, page 55, line 17, at end insert—
	'(7) For subsection (1)(i) (power of PTE to carry passengers by road) substitute—
	"(i) in the event that a quality contract within the meaning of section 124(4) of the Transport Act 2000 is terminated or local services undertaken to be provided under such a quality contract cease to be provided in whole or in part, to carry passengers by road within, to and from that area for the purpose of maintaining local services provided in the area to which that quality contract related, for a period not exceeding 12 months from the date of the termination of the quality contract or the cessation of the local services or such longer period as may be approved by the relevant traffic commissioner as being in the public interest;".'.
	Government amendments Nos. 264 and 265.

Paul Clark: I thank the hon. Gentleman for welcoming me and the amendments; I am sure that if we had not introduced them we would have been accused of not listening and of failing to take due account of the deep discussions in Committee, which I have read about and spoken about with the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Doncaster, Central (Ms Winterton), who took the Bill through Committee.
	We appreciate that there are many amendments in this group, but they can conveniently be discussed under four separate headings: first, the Government's proposal to replace quality contracts scheme approval boards in England so as to place the decision making squarely in the hands of local authorities; secondly, proposals to strengthen further the employment protections already contained in the Bill for bus company workers; thirdly, provisions to enable local authorities to operate bus services as the operator of last resort in certain very limited circumstances; and fourthly, some technical amendments to clause 44, which enables additional non-quality contract bus services to be registered within a quality contracts scheme area in certain specific circumstances. It might be helpful if I take the time to go through the amendments that stem from those four areas.
	There was healthy debate in Committee about the Bill's provisions for proposed quality contracts schemes in England to be approved by independent approval boards rather than the Secretary of State. Several hon. Friends, as well as the hon. Members for Lewes (Norman Baker) and for Manchester, Withington (Mr. Leech), raised questions about the proposed new approval process, and the Government agreed to consider them further. Members will be aware that we are very much in favour of devolution to local authorities; indeed, much of the Bill is aimed at achieving precisely that. However, it is also important to recognise that quality contracts schemes could have substantial impact on bus operators—particularly smaller operators—in an area and the drivers, maintenance staff and others whom they employ. The Government have consistently made it clear that we see a crucial role for independent scrutiny of local authority proposals for quality contracts schemes, and I stand by that commitment that we clearly outlined in Committee. At the same time, the Government have carefully listened to Members and local authorities who have argued with some passion that the final decision about quality contracts schemes should be placed squarely in the hands of locally elected members.
	In the light of those arguments, the Government have tabled new clauses 13 to 19 and amendments Nos. 163 to 265. The amendments would ensure that local authorities took the final decision on whether a quality contracts scheme should be made in their area, but they would also preserve an important role for independent scrutiny to ensure that the legitimate interests of bus operators remain protected. First and foremost, the amendments would replace the proposed approvals boards for England with quality contracts scheme boards, which are called QCS boards in the amendments. Instead of making the final decision as to whether a scheme should go ahead, the role of a QCS board would be to provide an opinion and, where appropriate, to make recommendations to the local authority. The scrutiny would take place at the end of the consultation process, so that the QCS board could form its opinion in light of the comments made by consultees, but it would be for the local authority to take the final decision having considered the QCS board's opinion and recommendations.
	I have taken careful note of the points raised in Committee about the remit of those boards, and the amendments now spell out much more clearly their precise role. There are two aspects to that role. First, the boards are to consider whether the local authority has satisfied the statutory requirements to give notice of their proposed scheme and to consult on it. Secondly, they are to consider whether the proposed scheme meets the public interest criteria set out in the Bill. Those criteria are whether it is likely to benefit passengers, increase patronage and contribute to the authority's local transport policies in an economic, efficient and effective way, and whether any adverse effects of the scheme on operators are proportionate to the benefits that will result from it. That makes it clear that the QCS boards will be focused on considering the proposed scheme. They will not be delivering opinions or recommendations on wider matters such as the authority's local transport policies, which are rightly a matter for the authority itself in consultation with the electorate.
	The Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Doncaster, Central, set out clearly in Committee why it is important for the Transport Tribunal to have a role in the QCS process. In particular, the intention is to provide a quicker, more accessible and less costly alternative to judicial review. The role of the Transport Tribunal is equally important under the Government's latest proposals, but at the same time we have listened carefully to the point made by Labour Members that we need to avoid needlessly creating a two-stage process for local authorities.

Graham Stringer: I shall speak to amendments Nos. 98 to 100, which stand in my name, Government new clause 9, new clauses 7 and 8, Government new clauses 13 to 19 and Government new clauses 124 and 128, but before doing so I want to thank my right hon. Friend the Member for Doncaster, Central (Ms Winterton) for all the times, not just in Committee, that she debated the issues with right hon. and hon. Members on both sides of the House, as well as for the time that she took out to have discussions with us, the trade unions, bus operators and local authorities to try to get the Bill right. What she did was above and beyond the call of duty.
	With all due respect to the Under-Secretary, my hon. Friend the Member for Gillingham (Paul Clark), I think that, thanks to the amendments, he and my right hon. Friend are presenting us with a much improved Bill. I am delighted with some of the amendments, and I will have one or two things to say about them, but there is no doubt that the Bill is going in the right direction and is much improved.
	The position taken by the hon. Member for Wimbledon (Stephen Hammond) is extraordinary. He expects a Minister taking a Bill through Parliament, having listened to arguments from all sides, never to change her mind. If we believed that, as he seems to, we could all save our time and not turn up for Public Bill Committees. His is an absurd position to take in a parliamentary democracy.

Angela Smith: The matters before us today do not relate to Northern Ireland, but I turn the question back on the hon. Gentleman. If he is so sure about regulation, why will not the Conservative party revisit the matters devolved to the City of London if—and that is an uncertain if—it returns to government?
	The Bill is about "Putting Passengers First", which was the title given to the original proposals. That title should not be forgotten. The Bill is about giving more local control to bus users up and down the country—not just in London, but in all our areas. It is particularly aimed at those living in metropolitan areas—often including quite considerable rural areas, too—where the need for re-regulation is at its greatest.
	Local control is a form of devolution that I would have thought that the Tory party would have been keen to pursue. I thought that the Conservative party was now the party that believed in local control and in giving local people more say in how their services were delivered. The responses given by the hon. Gentleman to my interventions exposed what I think to be the true Conservative position. That position is unreconstructed and unmodernised and is based totally on dogma rather than an appreciation of what is pragmatic and what will deliver for local people.  [ Interruption . ] The hon. Gentleman may laugh, but passengers in Sheffield, South Yorkshire, Manchester, Greater Tyneside and all such areas would not be laughing if a future Tory Government repealed this legislation.

Angela Smith: I would recommend that to a future Conservative Government. They might start with Birmingham, where I understand that there is quite strong support for the Bill from Conservative councillors. Indeed, the Conservatives have some councillors in South Yorkshire, I understand, in Rotherham. I understand that they would join the consensus in South Yorkshire, among all political parties, that the Bill is absolutely necessary to the future of public bus services in the area. As I say, the Bill is all about giving more local control to bus users in areas outside London, so that bus services can be improved. The amendments put forward will make it a great deal easier for us to deliver the improvements that we want—the quality contracts.
	The original points of difference between us have, for the most part, been ironed out. For example, there is now to be a consultation board, rather than an approvals board, thanks to Government amendments. The only point of difference that remains concerns the use of the Transport Tribunal for appeals. The Minister said earlier—I think that I understood him correctly—that the system for appeals, which will be prescribed in regulations, will be no more onerous than the current system. I would like to hear more from him on that point when he responds to the debate on this set of amendments. A new tiered system will come into effect as a result of the Tribunals, Courts and Enforcement Act 2007, but in the Transport Tribunal, we certainly do not want a number of tiers to come into operation in the appeals process, replacing the hoops and obstacles put in place by the Transport Act 2000. Those obstacles are what made it so very difficult to introduce the quality contracts that we are keen to see in our metropolitan areas. That issue needs exploring even now, and even more clarity is needed on the subject than was provided earlier in this debate.
	I welcome the new amendments on the TUPE regulations. People often underestimate or forget how important drivers are to the delivery of a good bus service. They are not always that well-paid, and the status of their employment has not always been that well-protected. We need to make sure that we deliver the best deal possible, because they need to be happy in their work and sure about their pension scheme if they are to deliver the punctual, courteous service that we want. One reason why we have problems getting the kind of service that we want in south Yorkshire is because of the difficulties that bus operators have in recruiting bus drivers. Levels of sickness are high, too. The aspects of the Bill that relate to the TUPE regulations are therefore very important to Labour Members. We know that the issue is not just about the rights of workers and so on, important though they are; it is also about the quality of the service delivered. I am absolutely delighted that the TUPE regulations are now in place.
	I share the concerns of my hon. Friend the Member for Manchester, Blackley and the hon. Member for Lewes about the operator of last resort. As I see it, the most likely scenario in which the operator of last resort power would be used is one in which a quality contract is awarded to an operator, and another operator who did not win the contract decides to walk away and deregister, leaving the service to flounder while the local authority or integrated transport authority establishes the new contracted service.
	Of course, it should take no longer than nine months to put services run by the local authority on the road, and to replace them by means of a new quality contract. However, I welcome the extension to 12 months. We must think through the possibility of instances in which the new quality contracts are not delivered within nine months, and instead take up to 12 months to be put in place. It would be foolish of us to exclude the possibility of the process taking even a little while longer than that. It would be sensible to put clear provisions in the Bill, or perhaps in regulations, that would make it possible for the period to go beyond 12 months in exceptional circumstances. It would be really unfortunate if, despite the best attempts of local authorities and ITAs, things went wrong, and we were left with a crisis situation because the Bill's provisions meant that the local authority could no longer fill the gap while it was in the process of establishing an alternative service via a quality contract.
	Overall, however, this is an excellent Bill, and the one for which we have been waiting for some time. It is not based on dogma. It is not based on a belief that we must run the system in one way and no other. It is based on the evidence that we have been hearing from our constituents, the bus users in our areas, over a period of 20 years. That voice has been rising from a whisper at first to a crescendo of dissent against the current arrangements for running bus services in areas such as Sheffield, Barnsley and Manchester. Our constituents demand change. They demand that local councils improve services and do something about those that people are no longer getting. Sometimes bus services are changed every three months, withdrawn or diverted. Buses do not turn up on a regular basis, letting people down as they try to get to work.
	Recently there were two changes to bus services in my area. Within three weeks I had received 1,000 signatures from local people demanding that something be done about those withdrawals of service. The hon. Member for Wimbledon may look away. He may take no notice, but the evidence exists. The service must change, and the Bill is the way to change it.

Ian Stewart: May I add my voice to those who have thanked and congratulated the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Doncaster, Central (Ms Winterton), and my hon. Friend the Minister? It was outrageous for the hon. Member for Wimbledon (Stephen Hammond) to accuse the Government of not listening and then complain that the amendments came so late. Of course the Government listened. My right hon. Friend listened and discussed these important issues not only with Labour Back Benchers but with Members from all Opposition parties. In the short time that the Under-Secretary has been in the Front-Bench team, he has worked hard and been rigorous in consulting and listening to Back Benchers from all parties. My thanks are sincere to both Ministers.
	I declare that I am a lifelong trade union member, and proud of it. I spent 20 years working for the Transport and General Workers Union as a regional officer in north-west England. Since becoming an MP, I have probably initiated upwards of nine or 10 debates in Westminster Hall and this Chamber on transport issues. That was not because I was a trade unionist in a union for the transport and public transport industry, but because it was one of the biggest demands of my constituents. The ability to get around the community, particularly for the elderly, the disabled and young mothers, is important to the debate about adequate public transport. Indeed, the economic interests of an area depend greatly on people being able to get to work on time.
	In the Standing Committee considering the Transport Act 2000, some of us spoke to the then Minister—in the Committee and privately—and tried to highlight the fact that there was an imbalance since the Conservatives had deregulated public transport outside London. That imbalance was not in favour of local people, and we argued strongly that it should be put right by giving local elected passenger transport authorities more powers. It is well recorded that, like my hon. Friend the Member for Manchester, Blackley (Graham Stringer), I would like to see public transport run by locally elected people in the interests of local people. But that is not the case; we still have a system in which private operators deliver the services. That is fine, but if we have to accept that, there should be a good balancing effect, with local, democratically elected members making sure that the process is carried out in a fair way that looks to the interests of the operators earning reasonable profits and keeping people in work, and most importantly, to ensuring that the service is adequate and affordable for our constituents.
	I turn to the question of deregulation being a matter of local democracy, and how the Bill will redress the imbalance. When the hon. Member for Wimbledon spoke earlier, he referred to a provision in the Bill that says "as it sees fit". That related to local decision making, and the attitude of the hon. Gentleman was an attack on local democracy. The phrase "as it sees fit" implies local knowledge, and if we chose to remove those words from provisions to do with locally elected or public bodies, we would indeed be reducing local democracy.

Paul Clark: An interesting range of contributions has been made to our discussions about one of the major elements of the Bill. It was interesting that the hon. Member for Wimbledon (Stephen Hammond) started with an attack on the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Doncaster, Central (Ms Winterton), who undertook a great range of work in listening carefully to the comments of not only Labour but Opposition Members.

Paul Clark: I thank the hon. Gentleman for his intervention, but let me quote my right hon. Friend:
	"I have, of course, listened very carefully to a lot of the points that have been made today and I would not in any sense wish to indicate that I would not take them away and consider them; that is the point of the Committee stage." ——[ Official Report, Local Transport Public Bill Committee, 29 April 2008; c. 220.]
	The vast majority of hon. Members—certainly Labour Members and Liberal Democrat Members—believe that to be the point of a Committee stage and of having Ministers who listen to the arguments.
	The hon. Member for Wimbledon also told us how hard pressed the bus companies are. There are undoubtedly problems, as there are for operators of any services in the current economic climate, but let us not run away with the idea that all is doom and gloom. The latest survey of company annual accounts and interim results for all the major bus companies, including First, Stagecoach, Arriva and Go-Ahead, clearly shows higher operating margins and profit levels this year than the same time last year. Those are facts and we should take them into account.
	The hon. Member for Wimbledon made several points about quantifying the benefits to passengers. Let us not get the idea that local authorities are not adept at quantifying costs and benefits for all kinds for all schemes, including transport schemes. There is nothing novel about that, and local authorities are familiar with the Department's guidance on transport scheme appraisal. Clause 19 clearly sets out the criteria that must be fulfilled, and they are relevant to several points that were made in other interventions and contributions to the debate. They are that the proposed scheme
	"will result in an increase in the use of bus services...will bring benefits to persons using local services in the area... will contribute to the implementation of the local transport policies of the authority or authorities...will contribute to the implementation of those policies in a way which is economic, efficient and effective".
	The final criterion is the proportionality requirement:
	"any adverse effects of the proposed scheme on operators will be proportionate to the improvement in the well-being of persons living or working in the area".

Mr. Speaker: With this it will be convenient to discuss the following: Amendments (a) and (b) to Government new clause 10.
	Government new clause 11— Provision that may be made in an order under section 78: membership of ITA.
	Amendments (a) and (b) thereto.
	Amendment No. 11, in clause 73, page 64, line 6, in clause 73, at end insert—
	'(2A) An order may be made only if all of the constituent councils of the proposed ITA have approved the scheme by means of—
	(a) a resolution, and
	(b) a public referendum.'.
	Government amendment No. 151.
	Amendment No. 29, page 64, line 31, leave out paragraph (b) and insert—
	'(b) for those members to be appointed from among the elected members of the constituent councils in such numbers as to be proportionate to the representation of political parties on those councils'.
	Amendment No. 12, page 64, line 32, at end insert
	', and
	(c) for those members to be appointed from among the members of the different political parties represented in the constituent councils, in such numbers as to be proportionate to the representation of political parties on those councils'.
	Amendment No. 13, page 64, line 32, at end insert—
	'(8A) Only those members appointed from among the elected members of the constituent councils under subsection (8) will be permitted to vote in the ITA'.
	Government amendment No. 152.
	Amendment No. 26, page 68, line 29, in clause 78, at end insert
	'but which arrangements must provide that members of the ITA who are not elected members of the ITA's constituent councils may not vote unless this is unanimously agreed by the ITA's elected members.'.
	Government amendment No. 153.
	Amendment No. 101, page 68, line 37, at end insert—
	'(c) for the ITA to determine what matters members of the ITA who are not elected members of the constituent councils may not vote on (which may include any matters relating to the funding or expenditure of the ITA, whether of a capital or revenue nature).'.
	Government amendments Nos. 156 and 157.
	Amendment No. 64, page 74, in clause 87, leave out subsection (2) and insert—
	'(2) The Secretary of State may not make an order under this Chapter unless the Secretary of State has laid a draft of the order before each House of Parliament and the remaining provisions of this section have been complied with.
	(3) The Secretary of State must have regard to—
	(a) any representations,
	(b) any resolution of either House of Parliament; and
	(c) any recommendations of a committee of either House of Parliament on the draft order,
	made on or with regard to the draft order during the 60-day period.
	(4) If, after the expiry of the 60-day period, the Secretary of State wishes to make an order in the terms of the draft, he must lay before Parliament a statement—
	(a) stating whether any representations were made under subsection (3)(a); and
	(b) if any representations were so made, giving details of them.
	(5) The Secretary of State may after the laying of such a statement make an order in the terms of the draft if it is first approved by a resolution of each House of Parliament.
	(6) However, a committee of either House may, at any time after the laying of a statement under subsection (4) and before the draft order is approved by that House under subsection (5), recommend under this subsection that no further proceedings be taken in relation to the draft order.
	(7) Where a recommendation is made by a committee of either House under subsection (6) in relation to a draft order, no proceedings may be taken in relation to the draft order in that House under subsection (5) unless the recommendation is, in the same Session, rejected by resolution of that House.
	(8) If, after the expiry of the 60-day period, the Secretary of State wishes to make an order consisting of a version of the draft order with material changes, he must lay before Parliament—
	(a) a revised draft order; and
	(b) a statement giving details of—
	(i) any representations made under subsection (3)(a); and
	(ii) the revisions proposed.
	(9) The Secretary of State may after laying a revised draft order and statement under subsection (8) make an order in the terms of the revised draft if it is first approved by a resolution of each House of Parliament.
	(10) However, a committee of either House may, at any time after the revised draft order is laid under subsection (8) and before it is approved by that House under subsection (9), recommend under this subsection that no further proceedings be taken in relation to the revised draft order.
	(11) Where a recommendation is made by a committee of either House under subsection (10) in relation to a revised draft order, no proceedings may be taken in relation to the revised draft order in that House under subsection (9) unless the recommendation is, in the same Session, rejected by resolution of that House.
	(12) Where a person making representations under subsection (3)(a) has requested the Secretary of State not to disclose them, the Secretary of State must not disclose them under subsections (4)(b) or (8)(b)(i) if or to the extent that to do so would (disregarding any connection with proceedings in Parliament) constitute a breach of confidence actionable by any person.
	(13) If information in representations made by a person in response to consultation under subsection (3)(a) relates to another person, the Secretary of State need not disclose the information under subsection (4)(b) or (8)(b)(i) if or to the extent that—
	(a) it appears to the Secretary of State that the disclosure of that information could adversely affect the interests of that other person; and
	(b) the Secretary of State has been unable to obtain the consent of that other person to the disclosure.
	(14) Subsections (12) and (13) do not affect any disclosure that is requested by, and made to, a committee of either House of Parliament charged with reporting on the draft order.
	(15) For the purposes of subsections (5) and (9) an order is made in the terms of a draft order if it contains no material changes to the provisions of the draft order.
	(16) In this section the "60-day period" means the period of 60 days beginning with the day on which the draft order was laid before Parliament under subsection (2).'.

Andrew Turner: The hon. Gentleman has just explained how responsibilities will be broadened under the ITAs. Will he explain how ITAs might include my mode of transport across the Solent—ferries?

Paul Clark: I understand what the hon. Gentleman is asking, but I do not want to end up in a situation such as the one that arose from the Transport Act 1968. For the past 25 years, following the abolition of the metropolitan county councils, we have not been able to amend things to allow the flexibility that would reflect the changes in transport demands in our cities in our towns and meet the requirements of our constituents and the local businesses that operate in those towns and cities. Therefore, prescribing what the decision-making processes of locally elected representatives should and should not be would be the wrong step to take.

Lee Scott: Would not the amendment tabled by my hon. Friend the Member for Wimbledon (Stephen Hammond) cover this point? It would not prevent advisers from being appointed; it would prevent the ITAs from being loaded committees, because it would be elected members who were in a position to vote. Surely accepting the amendment would be a simple way of making progress?

Paul Clark: That is one of the intentions and we made it clear that we would want to see it happen. Our purpose is to ensure that we get in place the structures and requirements to deliver decent bus services throughout our towns and cities.
	Having reviewed the provision further, the Welsh Assembly Government have indicated that they wish to preserve the flexibility for the Welsh Ministers to appoint—and hence to pay—persons other than those who might be appointed for those purposes in England. Accordingly, they would like the Bill to include a power for the Welsh Ministers not only to appoint such persons, but to pay them for their services. The new clauses and amendments constitute a direct response to that request, and confer on the Welsh Ministers a power equivalent to the one that clause 18, as amended in Committee, confers on the Secretary of State.
	 It being Nine o'clock, Mr. Deputy Speaker proceeded to put forthwith the Questions necessary for the disposal of Business to be concluded at that hour, pursuant to Order [26 March].

Amendment made: No. 104, in page 2, line 6, after 'any', insert
	'provision of this Act or any other'.— [Paul Clark.]

Amendments made: No. 105, in page 5, line 31, at end insert
	', if the senior traffic commissioner considers it appropriate'.
	No. 106, in page 5, line 32, at end insert
	', if the senior traffic commissioner considers it appropriate'.
	No. 107, in page 5, leave out line 33 and insert—
	'(d) such of the other traffic commissioners as the senior traffic commissioner considers appropriate;'.
	No. 108, in page 5, line 37, leave out 'thinks fit' and insert 'considers appropriate'.
	No. 109, in page 5, line 37, at end insert—
	'(ee) such organisations representative of the interests of users of public passenger transport services as the senior traffic commissioner considers appropriate;'.
	No. 110, in page 5, line 40, leave out 'thinks fit' and insert 'considers appropriate'.
	No. 111, in page 5, line 41, leave out 'thinks fit' and insert 'considers appropriate'.— [Paul Clark.]

Amendment made: No. 112, in page 9, line 30, after 'any', insert
	'provision of this Act or any other'.— [Paul Clark.]

Amendment made: No. 313, in page 10, line 31, leave out from 'government' to 'with' in line 34 and insert ', and
	(b) to have regard to any guidance issued for the purposes of this paragraph by the Secretary of State,
	with respect to mitigation of, or adaptation to, climate change or otherwise'.— [Paul Clark.]

Amendments made: No. 113, in page 11, leave out line 20 and insert
	'an authority other than an Integrated Transport Authority must'.
	No. 114, in page 11, leave out lines 30 and 31.
	No. 115, in page 11, leave out line 33 and insert 'an Integrated Transport Authority must consult—'.
	No. 116, in page 11, leave out lines 46 and 47.
	No. 117, in page 11, line 47, at end insert—
	'(2C) In preparing their local transport plan, and in keeping it under review, the authority must consult such of the following persons as they consider appropriate—
	(a) operators of any network or station, or of any railway services, in their area;
	(b) operators or providers of other transport services in their area, or organisations appearing to the authority to be representative of the interests of such persons;
	(c) organisations appearing to the authority to be representative of the interests of users of transport services and facilities in their area;
	and must also consult any other persons whom they consider appropriate.
	(2D) Any expression which is used in subsection (2C)(a) or (b) and in Part 1 of the Railways Act 1993 has the meaning given in that Part, taking "railway" to have its wider meaning (see section 81 of that Act).".'.— [Paul Clark.]

Amendment made: No. 118, in page 13, line 19, leave out subsection (6) and insert—
	'(6) In section 198(2) of that Act (interpretation of certain references to authority's local transport plan)—
	(a) for "local transport plan" (in the first place) substitute "local transport policies";
	(b) for "the local transport plan made jointly by" substitute "the local transport policies of";
	(c) omit the words from "and the councils" to the end.'.— [Paul Clark.]

Amendments made: No. 119, in page 17, line 49, leave out 'the Secretary of State' and insert 'the appropriate national authority'.
	No. 120, in page 18, line 1, leave out 'the Secretary of State' and insert 'the appropriate national authority'.— [Paul Clark.]

Amendment proposed: No. 5, in page 18, line 15, after 'relates', insert
	'which are greater than those that would pertain under existing arrangements,'.— [Stephen Hammond.]
	 Question put, That the amendment be made:—
	 The House divided: Ayes 137, Noes 312.

Amendments made: No. 163, in page 18, line 27, leave out subsection (3) and insert—
	'(3) For subsection (2) (need to comply with notice and consultation requirements and obtain approval of appropriate national authority) substitute—
	"(2) A quality contracts scheme may not be made unless the authority or authorities—
	(a) have complied with the requirements of section 125,
	(b) in the case of a scheme for an area in Wales, have obtained the approval of the Welsh Ministers in accordance with section 126, and
	(c) in the case of a scheme for an area in England, meet the requirements of subsection (2A).
	(2A) The requirements are that the authority or authorities—
	(a) have published under section 126AB(5) the request which they sent to the QCS board under section 126AB(4), and
	(b) publish, in accordance with section 127(1A), a response prepared by them to the report published by the QCS board under section 126AC(5) in relation to the scheme.".'.
	No. 121, in page 18, line 29, at end insert—
	'( ) In subsection (3)(b) (under quality contracts scheme local services to be provided only under quality contracts) after "section 127(4)" insert "and section 132C".'.— [Paul Clark.]

Amendments made: No. 164, in page 19, line 6, leave out 'and'.
	No. 165, in page 19, line 9, after 'relates', insert
	', and
	(d) if the proposed scheme relates to an area in England, send a copy of that notice to the senior traffic commissioner as soon as reasonably practicable after its publication.'.
	No. 166, in page 19, line 30, at end insert—
	'(f) the date by which any written responses to the consultation must be submitted to the authority or authorities.'.
	No. 167, in page 19, line 36, at end insert—
	'(1C) In subsection (1A)(e) "chief finance officer", in relation to a local transport authority, means that officer of the authority who is responsible under—
	(a) section 151 of the Local Government Act 1972, or
	(b) section 73 of the Local Government Act 1985,
	for making arrangements for the proper administration of the financial affairs of the authority.".'.
	No. 168, in page 19, line 41, at end insert—
	'(4A) In subsection (3) (consultees) at the beginning of paragraph (e) (traffic commissioners for the area of the scheme) insert "if the proposed scheme relates to an area in Wales,".'.
	No. 169, in page 19, leave out lines 42 to 47.— [Paul Clark.]

Amendments made: No. 170, in page 20, line 3, at end insert—
	'(1A) Before subsection (1) insert—
	"(A1) This section has effect in any case where the scheme or proposed scheme relates to an area in Wales.".'.
	No. 171, in page 20, line 3, at end insert—
	'(1B) In subsection (1) (which refers to compliance with section 125) after "complied with" insert "the requirements of".'.
	No. 172, in page 20, line 4, leave out subsections (2) and (3).
	No. 173, in page 20, line 12, at end insert—
	'( ) In subsection (3) (right of person consulted under section 125(3) to make representations) for "consulted" substitute "who was consulted, or who is aggrieved at not being consulted,".'.
	No. 174, in page 20, line 13, after '(4)(a)', insert '—
	(a) '.
	No. 175, in page 20, line 14, at end insert ', and
	(b) omit "or (as the case may be) paragraphs (a) to (d) of section 124(1A)".'.
	No. 176, in page 20, line 15, leave out subsection (5).
	No. 177, in page 20, line 18, at end insert—
	'(6) The heading to the section accordingly becomes "Approval of proposed schemes for areas in Wales".'..— [Paul Clark.]

Amendments made: No. 178, in page 20, leave out lines 22 and 23 and insert—
	'(1) Where the senior traffic commissioner receives a copy of a notice sent by the authority or authorities pursuant to section 125(1)(d), a board (a "QCS board") is to be constituted in accordance with the provisions of this Part to discharge the functions of such a board in relation to the proposed scheme.
	(1A) The board is to consist of 3 members.'.
	No. 179, in page 20, leave out lines 29 and 30 and insert—
	'(4) Within a prescribed period of receiving the copy of the notice mentioned in subsection (1), the senior traffic commissioner is to—
	(a) designate the traffic commissioner who is to be the Commissioner in the case of the particular board,
	(b) give notice of that designation to the authority or authorities, in accordance with the prescribed procedure, identifying the person designated,
	(c) publish, in such manner as may be prescribed, notice of the designation, identifying the person designated.'.
	No. 180, in page 20, line 34, leave out
	'the traffic commissioner's knowledge of the area in question'
	and insert
	'any particular knowledge or experience that the traffic commissioner may have'.
	No. 181, in page 21, line 8, leave out 'that duty is' and insert
	'the duties of the senior traffic commissioner under that subsection are'.
	No. 182, in page 21, line 9, at end insert—
	'(8A) The persons who are to be members of the board by virtue of subsection (2)(b) are to be designated in such manner and at such time as may be prescribed.'.
	No. 183, in page 21, line 13, at end insert—
	'(10) In this section "prescribed" means prescribed in regulations under section 126B or 133.".'.
	No. 184, in page 21, line 13, at end insert—
	'(2) In section 162 of the TA 2000 (interpretation of Part 2) insert the following definition at the appropriate place in subsection (1)—
	""QCS board" is to be read in accordance with section 126A(1),".'.— [Paul Clark.]

Amendments made: No. 185, in page 21, line 15, leave out '126A' and insert '126AC'.
	No. 186, in page 21, line 16, leave out 'approvals boards for England' and insert 'boards'.
	No. 187, in page 21, line 17, leave out 'rules' and insert 'regulations'.
	No. 188, in page 21, line 17, at end insert—
	'( ) with respect to the constitution of a QCS board,
	( ) with respect to the powers and duties of any such board,'.
	No. 189, in page 21, line 19, leave out 'approvals board for England' and insert 'such board'.
	No. 190, in page 21, line 22, leave out 'rules' and insert 'regulations'.
	No. 191, in page 21, leave out lines 24 to 32 and insert—
	'(a) provision about requests under section 126AB(4);
	(b) provision for an acknowledgement of the receipt of any such request to be issued by such person, and within such time, as may be prescribed in the regulations;
	(c) the procedure to be followed in cases where a further request under section 126AB(4) is sent to the QCS board by virtue of section 126AB(6) in relation to a proposed scheme which has been modified (the "modified scheme");
	(d) provision for or in connection with the making of representations about the modified scheme;
	(e) the publication by the board of provisional findings before it publishes its report.'.
	No. 192, in page 21, line 34, leave out 'approvals board for England' and insert 'QCS board'.
	No. 193, in page 21, line 34, leave out from 'normally' to end of line 35 and insert 'have published its report'.
	No. 194, in page 21, line 36, leave out 'an approvals board for England' and insert 'a QCS board'.
	No. 195, in page 21, line 37, leave out from 'to' to end of line 38 and insert 'publish its report within that time.'.
	No. 196, in page 21, line 39, leave out from beginning to end of line 2 on page 22 and insert—
	'(5) If a QCS board does not publish its report within that time, the Commissioner must immediately prepare a statement of—
	(a) the reasons why the board has not published its report within that time;
	(b) the action the board is taking to publish its report as soon as reasonably practicable;
	(c) the time within which it is expected that the board will publish its report.'.
	No. 197, in page 22, line 7, leave out
	'that made the application for approval'
	and insert
	'proposing to make the scheme'.
	No. 198, in page 22, line 10, after 'a', insert 'QCS'.
	No. 199, in page 22, line 12, after 'A', insert 'QCS'.
	No. 200, in page 22, leave out lines 14 and 15.
	No. 201, in page 22, line 17, at end insert—
	'"report" means the report which the board is required to publish by virtue of section 126AC(5).".'.
	No. 202, in page 22, leave out lines 18 to 23.— [Paul Clark.]
	After Clause 23
	 Amendments made: No. 203, in page 22, line 24, leave out Clause 24.
	No. 204, in page 23, line 38, leave out Clause 25.— [Paul Clark.]

Amendments made: No. 205, in page 25, leave out lines 14 to 35 and insert—
	'(2) For subsection (1) (making of scheme to be not later than 6 months after approval by appropriate national authority) substitute—
	"(1) The authority or authorities who proposed the scheme may make it—
	(a) in the case of a scheme for an area in England, in accordance with the requirements of subsection (1A);
	(b) in the case of a scheme for an area in Wales, in accordance with the requirements of subsection (1B).
	(1A) If the scheme is for an area in England, the authority or authorities who proposed it—
	(a) must not make the scheme until they publish a response prepared by them to the report published by the QCS board under section 126AC(5) in relation to the scheme, but
	(b) subject to that, may make the scheme at any time not later than 6 months after the publication of that report.
	Any such response must state the actions (if any) which the authority or authorities have taken in relation to each of the board's recommendations (if any) under section 126AC(2) or (3).
	(1B) If—
	(a) the scheme is for an area in Wales, and
	(b) the Welsh Ministers approve the scheme under section 126,
	the authority or authorities who proposed it may make it, as approved, at any time not later than 6 months after the date of the approval.".'.
	No. 206, in page 26, line 5, leave out
	'the authority or authorities propose to'
	and insert
	'it is proposed that the authority or authorities will'.
	No. 207, in page 26, line 15, leave out '(1), (1A)' and insert '(1A), (1B)'.
	No. 208, in page 26, line 15, at end insert—
	'( ) In section 162(4) of the TA 2000 (provisions where references to Passenger Transport Authorities or Integrated Transport Authorities are to be read as references to Passenger Transport Executives) insert at the appropriate place in the list of provisions—
	"section 127(3A),".'.— [Paul Clark.]

Amendments made: No. 122, in page 26, line 30, at end insert—
	'(c) in paragraph (b), after "under a quality contract" insert "or is an interim service (see section 132C)".'.
	No. 123, in page 26, line 36, after 'registration', insert 'or variation'.— [Paul Clark.]

Amendments made: No. 209, in page 27, line 12, leave out first 'the' and insert 'a quality contracts'.
	No. 210, in page 27, line 15, leave out from 'must' to end of line 22 and insert
	', unless the proposal that the scheme should continue is an exempt continuation proposal (see section 131AA), comply with the requirements of—
	(a) section 124(2)(b) (approval by Welsh Ministers), if the scheme is for an area in Wales, or
	(b) section 124(2)(c) (publication of request to, and response to report of, QCS board), if the scheme is for an area in England.'.
	No. 211, in page 27, line 22 , at end insert—
	'(2A) Section 125 applies in relation to the continuation of a scheme under this section as it applies in relation to the making of a scheme, but with the following modifications—
	(a) any reference to a proposal to make a scheme is to be read as a reference to a proposal for the continuation of a scheme,
	(b) any reference to the proposed scheme is to be read as a reference to the scheme as proposed to continue in operation,
	and with the further modifications specified in subsections (2B) and (3), but this is subject to such modifications or exclusions as may be prescribed by regulations under section 133.
	(2B) If the proposal is an exempt continuation proposal—
	(a) section 125(1)(d) (duty to send copy of notice to senior traffic commissioner if scheme relates to area in England) does not apply, but
	(b) section 125(3)(e) (duty to consult traffic commissioners for areas to which scheme relates) applies with the omission of the words "if the proposed scheme relates to an area in Wales,".'.
	No. 212, in page 27, line 23, leave out
	'mentioned in subsection (2)(a) must'
	and insert
	'that is to be published by virtue of section 125(1)(a), as applied by subsection (2A), must (instead of complying with section 125(1A))'.
	No. 213, in page 27, line 44, leave out from 'exempt' to 'a' in line 45 and insert 'continuation proposal,'.
	No. 214, in page 28, line 8, at end insert—
	'(j) the date by which any written responses to the consultation must be submitted to the authority or authorities.'.
	No. 215, in page 28, line 8, at end insert—
	'(3A) For the purposes of this section—
	(a) subsection (1B) of section 125 (matters to be included in the description of the proposed scheme) applies for the purposes of subsection (3)(a) as it applies for the purposes of subsection (1A)(a) of that section, and
	(b) subsection (1C) of that section (meaning of "chief finance officer") applies for the purposes of subsection (3)(h) as it applies for the purposes of subsection (1A)(e) of that section.'.
	No. 216, in page 28, leave out lines 9 to 16.
	No. 217, in page 28, line 17, leave out '(2)(a)' and insert '(3)'.
	No. 218, in page 28, line 18, leave out 'subsection (2)' and insert
	'section 125(1)(a) and (b) (as applied by this section)'.
	No. 219, in page 28, line 19, after 'before', insert
	'the scheme's expiry date.
	(5A) For the purposes of this section, a scheme's "expiry date" is'.
	No. 220, in page 28, line 24, at end insert—
	'(5B) The period for which a scheme continues in operation by virtue of a decision under subsection (1) may begin—
	(a) on such day falling before, on, or immediately after the scheme's expiry date as the authority or authorities decide, or
	(b) if the circumstances are such that the continuation of the scheme cannot begin on a day falling within paragraph (a), on such later day as the authority or authorities decide in accordance with regulations made by the appropriate national authority for the purposes of such circumstances.'.
	No. 221, in page 28, line 28, leave out from 'until' to end of line 49 and insert—
	'(a) in a case where the scheme is to continue in operation for a further period, the day before the beginning of that period, or
	(b) in any other case, the scheme's expiry date.'.
	No. 222, in page 28, line 49, at end insert—
	'( ) Section 130 (tendering) applies to a scheme that continues in operation under this section (whether or not the proposal for the scheme to continue in operation was an exempt continuation proposal) but subject to regulations made by the appropriate national authority under section 133(3).".'..— [Paul Clark.]
	After Clause 30
	 Amendment made: No. 223, in page 29, line 1, leave out Clause 31.— [Paul Clark.]

Amendments made: No. 224, in page 30, leave out lines 39 to 43 and insert—
	'(1) This section applies where an authority or authorities who propose that a quality contracts scheme should continue in operation (with or without modifications) under section 131A—
	(a) decide that the proposal is an exempt continuation proposal, and
	(b) acting on the basis of that decision, decide that the scheme should so continue in operation.'.
	No. 225, in page 30, line 44, leave out from 'person' to 'may' in line 45 and insert 'falling within subsection (2A)'.
	No. 226, in page 31, leave out line 2 and insert
	'an exempt continuation proposal, or'.
	No. 227, in page 31, line 4, leave out 'force' and insert 'operation'.
	No. 228, in page 31, line 4, at end insert—
	'(2A) The persons are—
	(a) any person who was consulted under section 125(3) (as it applies by virtue of section 131A in a case where the proposal is an exempt proposal),
	(b) any person who was not so consulted, but who, in the opinion of the Transport Tribunal, ought to have been so consulted.'.
	No. 229, in page 31, line 4, at end insert—
	'(2B) An appeal under this section may be—
	(a) on a point of law, or
	(b) on a question of fact.'.
	No. 230, in page 31, line 4, at end insert—
	'(2C) On an appeal under this section the Transport Tribunal shall have power—
	(a) to make such order as they think fit, or
	(b) to remit any matter (with or without directions) to the authority or authorities for their consideration or determination or for such other purposes as the Tribunal may direct.'.
	No. 231, in page 31, leave out lines 8 to 13 and insert—
	'(b) remit the matter to the authority or authorities with one or more directions under subsection (4),
	(c) direct the authority or authorities to vary the scheme, as it continues or is to continue in operation, in such manner as the Tribunal may specify in the direction (but see subsection (4A)),
	(d) quash the whole or any part of the decision of the authority or authorities (but see subsection (4B)).'.
	No. 232, in page 31, leave out lines 18 to 20 and insert—
	'(b) as respects those matters, consult or further consult the persons mentioned in section 125(3) as it applies by virtue of section 131A in a case where the proposal is an exempt continuation proposal,'.
	No. 233, in page 31, line 21, leave out 'modifications of the scheme' and insert
	'variations of the scheme, as it continues or is to continue in operation,'.
	No. 234, in page 31, line 22, at end insert—
	'(4A) The Tribunal may give a direction under this section to vary a scheme by reducing the area to which it relates only if they are of the opinion that the conditions in section 132(3) are met.
	(4B) The power of the Tribunal under this section to quash a decision of an authority or authorities that a scheme should continue in operation under section 131A is exercisable only if the Tribunal are of the opinion that there are defects in the scheme which are not capable of being remedied by varying the scheme under or by virtue of subsection (3)(b) or (c).'.
	No. 235, in page 31, leave out lines 23 to 29 and insert—
	'(5) If, on an appeal under paragraph (a) or (b) of subsection (2), the Tribunal decide that the proposal for the scheme to continue in operation was not an exempt continuation proposal—
	(a) they must allow the appeal to that extent,
	(b) they must remit the matter to the authority or authorities, with or without directions, and
	(c) subsections (6) to (9) have effect.
	(6) The directions that the Tribunal may give under this section include—
	(a) directions to take any action specified in the directions for the purpose of remedying any failure to comply with requirements of this Part that have effect where a proposal for continuation under section 131A is not an exempt continuation proposal,
	(b) directions to make variations specified in the directions for the purpose of securing that the condition in paragraph (a) or (b) of subsection (1) of section 131AA (meaning of "exempt continuation proposal") is met in the case of the scheme,
	(c) directions authorising the scheme to continue in operation temporarily, with or without variations, for a period specified or described in the directions, but subject to compliance with conditions as to the time within which any particular action specified in directions under this section is to be taken.
	(7) Where the Tribunal give directions falling within subsection (6), they may also make provision in the order dispensing with the need to comply with such procedural requirements imposed by or under this Part as they may specify in the order.
	(8) If the scheme or proposed scheme relates to an area in Wales, the Tribunal may not make any order which has the effect of—
	(a) giving approval under section 126 as it applies by virtue of section 131B, or
	(b) dispensing with the need for any such approval,
	but this is without prejudice to the temporary provision that may be made in directions falling within subsection (6)(c).
	(9) The appropriate national authority may make regulations with respect to the procedure to be followed in relation to a scheme in cases where the Tribunal decide that the proposal for continuation under section 131A was not an exempt continuation proposal.".' .— [Paul Clark.]

Amendments made: No. 236, in page 31, line 33, leave out from 'where' to end of line 37 and insert
	'an authority or authorities—
	(a) propose that a quality contracts scheme for an area in England should continue in operation (with or without modifications) under section 131A,
	(b) decide that the proposal is not an exempt continuation proposal, and
	(c) acting on the basis of that decision, decide that the scheme should so continue in operation.'.
	No. 237, in page 31, leave out lines 38 to 46 and insert—
	'(2) Any person falling within subsection (3) may appeal to the Transport Tribunal against the decision of the authority or authorities that the scheme should continue in operation.
	(3) The persons are—
	(a) any person who was consulted under section 125(3) (as it applies by virtue of section 131A in a case where the proposal is not an exempt continuation proposal),
	(b) any person who was not so consulted, but who, in the opinion of the QCS board under section 126AC(1)(b), ought to have been so consulted.'.
	No. 238, in page 32, line 1, leave out
	'Subsections (4) to (6) of section 126D'
	and insert
	'Sections 127A(4) to (7) and 127B'.
	No. 239, in page 32, line 3, leave out from 'of' to end of line 10 and insert
	'section 127A, but with—
	(a) the modifications in subsection (5), and
	(b) such further or different modifications or exclusions as may be prescribed under section 133.
	(5) The modifications are—
	(a) any reference to the scheme is to be read as a reference to the scheme as it continues in operation,
	(b) any reference to the scheme as made is to be read as a reference to the scheme as it continues in operation,
	(c) any reference to the proposed scheme is to be read as a reference to the scheme as proposed to continue in operation,
	(d) any reference to any conditions set out in any paragraphs of section 124(1) or (as the case may be) of section 124(1A) being met is to be read as a reference to those conditions being met by the scheme as proposed to continue in operation (with any proposed modifications),
	(e) any reference to section 125 or any provision of that section is to be read as a reference to that section or provision as it applies by virtue of section 131A in a case where the proposal is not an exempt continuation proposal.'..— [Paul Clark.]

Amendments made: No. 240, in page 32, line 15, at end insert—
	'(2A) In subsection (4) (grounds for revocation) for "or" at the end of paragraph (a) substitute—
	"(aa) if they consider that those conditions would no longer be met with respect to it if they were to act in accordance with a direction given by the Transport Tribunal under this Part, or".
	No. 241, in page 32, line 16, leave out subsection (3) and insert—
	'(3) In subsection (4A) (which defines the "relevant conditions" according to whether the scheme has been varied or not)—
	(a) in paragraph (a), before "varied" insert "continued in operation under section 131A or",
	(b) also in paragraph (a), for "124(1)(a) and (b)" substitute "124(1)(a) to (e)",
	(c) in paragraph (b), before "varied" insert "continued in operation under section 131A or",
	(d) in paragraph (c), before "varied", in the first place where it occurs, insert "continued in operation under section 131A or",
	(e) also in paragraph (c), before "varied", in the second place where it occurs, insert "continued in operation or".'.
	No. 242, in page 32, line 18, leave out from beginning to 'A' in line 26 and insert—
	'(4) For subsection (5) (procedure for varying or revoking a scheme etc) substitute—
	"(5) The variation or revocation of a scheme under subsection (1) or (4) is subject to the provisions of—
	(a) subsection (6) (revocation: areas in England),
	(b) subsection (7) (non-exempt variation: areas in England),
	(c) subsection (8) (exempt variation: areas in England), or
	(d) subsection (9) (areas in Wales),
	except to the extent that section 132B (exemption for specific variations directed by Transport Tribunal on appeal) otherwise provides.
	(6) The revocation of a scheme for an area in England is subject to the following requirements—
	(a) before deciding to revoke the scheme, the authority or authorities must consult the persons mentioned in section 125(3) and each relevant traffic commissioner,
	(b) as soon as reasonably practicable after deciding to revoke the scheme, the authority or authorities must give notice of the decision to each relevant traffic commissioner and must publish the notice in at least one newspaper circulating in the area to which the scheme relates,
	(c) the notice must state that the decision has been taken and specify the date on which the revocation is to take effect,
	except to the extent that those requirements are modified or excluded by regulations made by the Secretary of State under section 133.
	For the purposes of this subsection "relevant traffic commissioner" means the traffic commissioner for any traffic area which consists of or includes the whole or any part of the area to which the scheme relates.
	(7) The non-exempt variation of a scheme for an area in England is subject to the same procedure as the making of the scheme, except to the extent that that procedure is modified or excluded by regulations made by the Secretary of State under section 133.
	(8) The exempt variation of a scheme for an area in England is subject to the same procedure as the making of a scheme, except to the extent that that procedure is modified or excluded by regulations made by the Secretary of State under section 133, but for the purposes of this subsection—
	(a) sections 124(2)(c) and (2A), 126A to 126B and 127(1)(a) and (1A) (the QCS board provisions) do not apply;
	(b) there is no requirement to give notice to the senior traffic commissioner under section 125(1)(d);
	(c) the authority or authorities must consult any traffic commissioner falling within section 125(3)(e) (which accordingly has effect for this purpose with the omission of the words "if the proposed scheme relates to an area in Wales,");
	(d) sections 127A and 127B (appeals to the Transport Tribunal) do not apply;
	(e) section 132A (appeals where proposed variation considered exempt) has effect in those cases for which it makes provision.
	(9) The variation or revocation of a scheme for an area in Wales—
	(a) requires the approval of the Welsh Ministers, except in the case of a variation which is an exempt variation, and
	(b) is subject to the same procedure as the making of the scheme, except to the extent that that procedure is modified or excluded by regulations made by the Welsh Ministers under section 133.
	(10) Section 130 (tendering) applies to a varied scheme (whether or not the variation is an exempt variation) but subject to regulations made by the appropriate national authority under section 133(3).
	(11) '.
	No. 243, in page 32, line 31, at end insert—
	'and a "non-exempt variation" is any other variation of a scheme.".'.
	No. 244, in page 32, line 31, at end insert—
	'(5) In consequence of the amendments made by subsection (4), renumber subsection (6) (regulations about revoking schemes before they come into operation) as subsection (12).'.— [Paul Clark.]

Amendments made: No. 245, in page 32, leave out lines 35 to 39 and insert—
	'(1) This section applies where an authority or authorities who propose to vary a quality contracts scheme under section 132—
	(a) decide that the proposal is an exempt variation for the purposes of that section, and
	(b) acting on the basis of that decision, decide to vary the scheme under that section.'.
	No. 246, in page 32, line 40, leave out from 'person' to 'may' in line 41 and insert 'falling within subsection (2A)'.
	No. 247, in page 33, line 2, at end insert—
	'(2A) The persons are—
	(a) any person who was consulted under section 125(3) (as it applies by virtue of subsection (8) or, as the case may be, (9)(b) of section 132 in a case where the variation is an exempt variation for the purposes of section 132),
	(b) any person who was not so consulted, but who, in the opinion of the Transport Tribunal, ought to have been so consulted.'.
	No. 248, in page 33, line 2, at end insert—
	'(2B) An appeal under this section may be—
	(a) on a point of law, or
	(b) on a question of fact.'.
	No. 249, in page 33, line 2, at end insert—
	'(2C) On an appeal under this section the Transport Tribunal shall have power—
	(a) to make such order as they think fit, or
	(b) to remit any matter (with or without directions) to the authority or authorities for their consideration or determination or for such other purposes as the Tribunal may direct.'.
	No. 250, in page 33, leave out lines 6 to 10 and insert—
	'(b) remit the matter to the authority or authorities with one or more directions under subsection (4),
	(c) direct the authority or authorities to vary the scheme, to the extent of the variation made by the authority or authorities, in such manner as the Tribunal may specify in the direction (but see subsection (4A)),
	(d) quash the whole or any part of the decision of the authority or authorities.'.
	No. 251, in page 33, leave out lines 15 to 17 and insert—
	'(b) as respects those matters, consult or further consult the persons mentioned in section 125(3) (as it applies by virtue of subsection (8) or, as the case may be, (9)(b) of section 132 in a case where the variation is an exempt variation for the purposes of section 132),'.
	No. 252, in page 33, line 18, leave out 'modifications' and insert 'variations'.
	No. 253, in page 33, line 19, at end insert—
	'(4A) The Tribunal may give a direction under this section to vary a scheme by reducing the area to which the scheme relates only if they are of the opinion that the conditions in section 132(3) are met.'.
	No. 254, in page 33, leave out lines 20 to 26 and insert—
	'(5) If, on an appeal under paragraph (a) or (b) of subsection (2), the Tribunal decide that the variation was not an exempt variation for the purposes of section 132—
	(a) they must allow the appeal to that extent,
	(b) they must remit the matter to the authority or authorities, with or without directions, and
	(c) subsections (6) to (9) have effect.
	(6) The directions that the Tribunal may give under this section include—
	(a) directions to take any action specified in the directions for the purpose of remedying any failure to comply with requirements of this Part that have effect where a proposed variation under section 132 is not an exempt variation,
	(b) directions to make variations specified in the directions for the purpose of securing that the condition in paragraph (a), (b) or (c) of section 132(11) (meaning of "exempt variation") is met in the case of the variation,
	(c) directions authorising the scheme to continue in operation temporarily, with or without variations, for a period specified or described in the directions, but subject to compliance with conditions as to the time within which any particular action specified in directions under this section is to be taken.
	(7) Where the Tribunal give directions falling within subsection (6), they may also make provision in the order dispensing with the need to comply with such procedural requirements imposed by or under this Part as they may specify in the order.
	(8) If the scheme or proposed scheme relates to an area in Wales, the Tribunal may not make any order which has the effect of—
	(a) giving approval under section 126 as it applies by virtue of section 132, or
	(b) dispensing with the need for any such approval,
	but this is without prejudice to the temporary provision that may be made in directions falling within subsection (6)(c).
	(9) The appropriate national authority may make regulations with respect to the procedure to be followed in cases where the Tribunal decide that the variation or proposed variation was not an exempt variation for the purposes of section 132.".'..— [Paul Clark.]

Amendments made: No. 255, in page 33, line 30, leave out 'after "varying" insert
	", continuing"' and insert 'after "making" insert "continuing,"'.
	No. 256, in page 33, line 30, at end insert—
	'( ) In subsection (1)(b) (approvals of schemes) after "schemes" insert "for areas in Wales".
	( ) After subsection (1)(b) insert—
	"(bb) the procedure to be followed by local transport authorities for areas in England when discharging functions that relate to a QCS board,
	(bc) the procedure to be followed by QCS boards when discharging functions relating to proposed schemes for areas in England,".'.
	No. 257, in page 33, line 32, leave out 'after "proposed variations" insert
	", continuations"' and insert 'before "variations" insert "continuations,"'.
	No. 258, in page 33, line 33, at end insert—
	'( ) in paragraph (e) (applications for approval of proposals) after "proposals" insert "for areas in Wales";'.
	No. 259, in page 33, line 36, at end insert—
	'(ef) the form and manner of requests under section 126AB(4) relating to proposed schemes for areas in England,
	(eg) the form and manner in which copies of proposed schemes for such areas are to be sent to a QCS board under section 126AB(5),
	(eh) the giving of notice, and the preparation and publication of reports, by QCS boards under section 126AC(5),
	(ei) the form and manner of responses by local transport authorities to such reports,";'.
	No. 260, in page 33, line 37, leave out 'for "or variations" substitute ", variations or continuations"' and insert 'after "schemes" insert ", continuations"'.
	No. 261, in page 33, line 38, at end insert—
	'(d) in paragraph (g) (notice of schemes or of their variation or revocation) before "variation" insert "continuation,".'.
	No. 262, in page 33, line 38, at end insert—
	'(4) After subsection (2) insert—
	"(3) The appropriate national authority may also make regulations modifying or excluding the application of provisions of this Part, so far as relating to quality contracts schemes, in cases where a local transport authority, or two or more local transport authorities acting jointly, do any of the following—
	(a) by virtue of section 126AB(6), send to a QCS board a further request under section 126AB(4) and modified proposals under section 126AB(5),
	(b) propose or decide that a scheme should continue in operation (with or without modification) under section 131A,
	(c) propose or decide to vary or revoke a scheme under section 132.
	(4) Regulations made by virtue of subsection (3) must not exclude any requirement for the authority or authorities—
	(a) under section 126, to obtain the approval of the Welsh Ministers,
	(b) under section 127(1A), to publish their response to the report of the QCS board.".'— [Paul Clark.]

Amendment made: No. 263, in page 33, line 44, at end insert—
	'( ) In subsection (1)(b) (transitional provision in connection with variation of schemes) before "variation" insert "continuation in operation or".'.— [Paul Clark.]

Amendments made: No. 124, in page 34, line 27, at end insert—
	'(1A) Subsection (2) also applies to a situation in which—
	(a) local services which, on the coming into force of a quality contract, a person (the "former operator") would be required by virtue of section 129(1)(b) to cease providing in the area mentioned in subsection (1)(a) of this section, cease to be provided by the former operator before the coming into force of that quality contract, and
	(b) at the same time, a person (the "new operator") begins to provide local services in that area under an agreement which the authority or authorities who made the relevant quality contracts scheme entered into by reason of the cessation of the local services referred to in paragraph (a).'.
	No. 125, in page 34, line 28, leave out 'such situation' and insert
	'situation to which this subsection applies'.
	No. 126, in page 34, line 35, after 'subsection (1)(a)', insert
	'or (as the case may be) the local services referred to in subsection (1A)(a)'.
	No. 127, in page 34, line 35, at end insert—
	'( ) Any situation which by virtue of this section is treated as a relevant transfer for the purposes of TUPE is also to be treated as a relevant transfer within the meaning of TUPE for the purposes of sections 257 and 258 of the Pensions Act 2004 and any regulations made under section 258 of that Act.'.
	No. 128, in page 35, line 21, at end insert—
	'(e) provision requiring the authority or authorities who made a quality contracts scheme to ensure that any quality contract entered into with a person under the scheme, or any other agreement made with a person for the provision of local services in the area to which the scheme relates, is made on terms—
	(i) that require the person, in the event of there being any transferring employees, to secure pension protection for every transferring employee, or every transferring employee of a prescribed description, who as an employee of the former operator had rights to acquire pension benefits, and
	(ii) that, so far as relating to the securing of pension protection for a transferring employee, are enforceable by the employee.
	(5A) For the purposes of this section—
	(a) "transferring employee" means an employee of a former operator whose contract of employment becomes, either by virtue of TUPE or by virtue of this section, a contract of employment with a new operator;
	(b) "pension protection" is secured for a transferring employee if after the change of employer referred to in paragraph (a)—
	(i) the employee has, as an employee of the new operator, rights to acquire pension benefits, and
	(ii) those rights are of such description as is prescribed by regulations.
	(5B) The Secretary of State must exercise the power conferred by this section to make regulations containing provision falling within subsection (5)(e) so as to ensure—
	(a) that pension protection is required to be secured for every transferring original employee who as an employee of the original operator had rights to acquire pension benefits, and
	(b) that the rights to acquire pension benefits which a transferring original employee has as an employee of the new operator by virtue of paragraph (a) are rights which—
	(i) are the same as the rights the transferring original employee had as an employee of the original operator, or
	(ii) under provision made by regulations, count as being broadly comparable to, or better than, those rights.
	(5C) For the purposes of subsection (5B)—
	"transferring original employee" means a transferring employee—
	(e) who immediately before the relevant date was employed by a person (the "original operator") providing local services in the area to which the relevant quality contracts scheme relates, and(f) whose contract of employment—(i) was, from that date until the change of employer referred to in subsection (5A)(a), a contract of employment with the original operator, or(ii) on each occasion when the employee was subject to a relevant transfer became, either by virtue of TUPE or by virtue of this section, a contract of employment with a person providing local services in the area referred to in paragraph (a);
	"relevant date", in relation to a quality contracts scheme, means—
	(g) the date on which the scheme was made, or(h) where—(i) the local services being provided by the original operator were not subject to the scheme when it was made, and(ii) as a result of either the variation of the scheme, or the continuation of the scheme with modifications, those services became subject to the scheme,
	the date on which that variation, or (as the case may be) the decision to continue the scheme with those modifications, was made;
	"relevant transfer" means anything that is, or is to be treated as, a relevant transfer for the purposes of TUPE.'.— [Paul Clark.]

Amendments made: No. 129, in page 40, line 3, after 'service', insert
	'which is to have one or more stopping places'.
	No. 130, in page 40, line 10, at end insert—
	'(2A) After subsection (7) (variation or revocation of registration) insert—
	"(7A) Where—
	(a) a quality contracts scheme under section 124 of the Transport Act 2000 is in force,
	(b) the operator of a local service registered under this section proposes to vary the registration,
	(c) the service, as proposed to be varied, is to have one or more stopping places within the area to which the scheme relates,
	(d) the service, as proposed to be varied, is not excluded from the scheme by virtue of section 127(4) of the Transport Act 2000, and
	(e) the operator does not propose to provide the service, as proposed to be varied, under a quality contract by virtue of the scheme,
	section 6B of this Act has effect with respect to the variation of the registration.".
	(2B) In subsection (8) (time when variation etc becomes effective) after "Subject to regulations under this section" insert "and, in the case of variation, to section 6B of this Act,".'.
	No. 131, in page 40, leave out lines 13 to 25 and insert—
	'(1) This section applies—
	(a) by virtue of subsection (2B) of section 6 of this Act ("Case 1"), in relation to registration of the proposed local service mentioned in that subsection;
	(b) by virtue of subsection (7A) of that section ("Case 2"), in relation to the proposed variation of the registration mentioned in that subsection.
	(2) Where this section applies, the operator may apply to a traffic commissioner—
	(a) in Case 1, for registration of the proposed service under section 6 of this Act, or
	(b) in Case 2, for variation of the registration under that section,
	notwithstanding anything in section 129(1)(a) of the Transport Act 2000 (sections 6 to 9 of this Act not to apply).'
	No. 132, in page 40, line 27, leave out
	'the following provisions of this section'
	and insert
	'subsections (4) to (6) below'.
	No. 133, in page 40, line 32, leave out 'proposed service' and insert 'application'.
	No. 134, in page 40, line 32, after 'must', insert '—
	(a) in Case 1,'.
	No. 135, in page 40, line 33, at end insert ', or
	(b) in Case 2, vary the registration under that section.'.
	No. 136, in page 40, line 35, at end insert—
	'(6A) In relation to Case 2, regulations may prescribe cases in which subsections (3) to (6) above do not apply.'.
	No. 137, in page 40, line 37, after 'provision', insert '—
	(a) in Case 1,'.
	No. 138, in page 40, line 38, leave out 'will' and insert ', or
	(b) in Case 2, of the local service as proposed to be varied,
	will'.— [Paul Clark.]

Amendments made: No. 139, in page 53, line 4, leave out from 'subsection (3)' to end of line 5 and insert
	'in the manner mentioned in subsection (1AA)'.
	No. 140, in page 53, line 11, at end insert—
	'(1AA) An order under subsection (1A)(b) may require the operator to expend money on or towards—
	(a) the provision of specified local services or specified facilities to be used in connection with such services;
	(b) specified improvements in such services or facilities.
	In this subsection "specified" means specified in the order.'.— [Paul Clark.]

Amendments made: No. 141, in page 58, line 13, after 'any', insert
	'provision of this Act or any other'.
	No. 142, in page 59, line 14, leave out 'an' and insert
	'this Act or any other'.
	No. 143, in page 59, line 38, leave out 'an' and insert
	'this Act or any other'.— [Paul Clark.]

Amendments made: No. 144, in page 60, line 9, leave out 'or'.
	No. 145, in page 60, line 11, at end insert—
	'(c) prescribed tramway passenger services, or tramway passenger services of a prescribed description, so far as operating in England;
	(d) prescribed passenger transport facilities in England, or passenger transport facilities in England that are of a prescribed description.'.
	No. 146, in page 60, line 13, after 'enactment', insert '(including this Act)'.
	No. 147, in page 60, line 24, after 'any', insert
	'provision of this Act or any other'.
	No. 148, in page 60, line 33, leave out from 'to' to end of line 34 and insert '—
	(a) services of a kind mentioned in paragraphs (a) to (c) of subsection (1), so far as operating in England, or
	(b) passenger transport facilities in England.'.
	No. 149, in page 61, line 2, at end insert—
	'"passenger transport facilities" means facilities for services of a kind mentioned in paragraphs (a) to (c) of subsection (1);'.
	No. 150, in page 61, line 4, at end insert—
	'"tramway passenger service" means any service for the carriage of passengers by tramway.".'.— [Paul Clark.]

Amendment made: No. 151, in page 64, line 22, leave out subsections (7) to (9).— [Paul Clark.]

Amendment made: No. 152, in page 66, line 43, leave out 'direction' and insert 'review'.— [Paul Clark.]

Amendment proposed: No. 26, in page 68, line 29, at end insert
	'but which arrangements must provide that members of the ITA who are not elected members of the ITA's constituent councils may not vote unless this is unanimously agreed by the ITA's elected members.'.— [Mr. Leech.]
	 Question put, That the amendment be made:—
	 The House divided: Ayes 178, Noes 268.

Amendment made: No. 153, in page 68, line 32, leave out subsections (3) and (4).— [Paul Clark.]

Amendment made: No. 154, in page 69, line 43, at end insert—
	'( ) An order under this section which provides for the delegation of any function of a charging authority within the meaning of Part 3 of the TA 2000 may be made—
	(a) where the area in relation to which the order has effect comprises all or part of the area of one charging authority, only with the consent of that authority;
	(b) where that area comprises all or part of the area of two or more charging authorities, only with the consent of a majority of those authorities.'.— [Paul Clark.]

Amendments made: No. 155, in page 73, line 41, after 'amending,', insert 'modifying,'.
	No. 156, in page 73, line 42, at end insert—
	'( ) The provision which may be included by virtue of subsection (4) does not include provision amending or disapplying sections 15 to 17 of, and Schedule 1 to, the Local Government and Housing Act 1989 (c. 42) (political balance on local authority committees etc).'.— [Paul Clark.]

Amendment made: No. 157, in page 74, line 6, at end insert—
	'(3) If, apart from this subsection, an instrument containing an order under this Chapter would be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it shall proceed in that House as if it were not a hybrid instrument.'.— [Paul Clark.]

Amendment made: No. 158, in page 81, line 38, at end insert—
	'(1A) For subsection (1) substitute—
	"(1A) Where the charging authority or any of the charging authorities are—
	(a) a local traffic authority for an area in England, or
	(b) an Integrated Transport Authority,
	that authority or those authorities (acting alone or jointly) must consult such local persons, and such representatives of local persons, as they consider appropriate about the charging scheme.
	(1B) In subsection (1A)—
	"local persons" means any persons who are likely to be affected by, or interested in, the making of the scheme;
	"representatives" means any persons who appear to the charging authority or charging authorities to be representative of local persons.
	(1C) In any other case, the charging authority or the charging authorities (acting jointly) may, at any time before an order making, varying or revoking a charging scheme under this Part is made, consult such persons as they consider appropriate about the charging scheme, variation or revocation.".'.— [Paul Clark.]

Amendment made: No. 314, in page 94, line 34, at end insert—
	'(la) section [Financial penalty deposits: powers of vehicle examiners in Scotland];'.— [Paul Clark.]

Amendments made: No. 264, in page 95, line 7, leave out ', rules'.
	No. 159, in page 95, line 9, after '116', insert
	', [Street works: reinstatement and remedial works]'.— [Paul Clark.]

Amendment made: No. 160, in page 115, line 8, at end insert—
	'46A In section 198(2) (interpretation of certain references to authority's local transport plan) for "the Passenger Transport Authority for the passenger transport area" substitute "the Integrated Transport Authority for the integrated transport area".'.— [Paul Clark.]

Amendments made: No. 161, in page 126, leave out line 35 and insert—
	
		
			  'In section 198(2), the words from "and the councils" to the end.'. 
		
	
	No. 265, in page 127, line 7, column (2), at end insert
	'In section 126(4)(a), the words "or (as the case may be) paragraphs (a) to (d) of section 124(1A)".'.— [Paul Clark.]
	Title
	 Amendments made: No. 162, line 8, after 'roads;', insert
	'to make provision about the meaning of "street works" and "street works licence" in Part 3 of the New Roads and Street Works Act 1991;'.
	No. 315, line 8, after '2004', insert
	'and section 90F of the Road Traffic Offenders Act 1988'.— [Paul Clark.]
	 Order for Third Reading read.

Jim Fitzpatrick: I congratulate my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) on securing this debate and on providing us with an opportunity to discuss works by utility companies in the highway. I know that he has written to my predecessors on this matter and I admire his tenacity in ensuring that it remains under close scrutiny.
	Roads are the vital arteries of modern life. Not only do they allow roads users to travel to their destinations or deliver goods or services, they allow utility companies to provide the energy, water and telecommunications that we have come to expect as part of modern life. We expect them to be available all day, every day. This level of availability—99.9 per cent. of the time—is not easy to achieve. It requires utility companies to maintain, replace or upgrade their infrastructure to ensure this reliability and continuity of supply, as well as to repair and restore supply when it fails. This is not easy.
	One penalty of being the first industrialised nation is that our infrastructure is older than that of most other countries. In London, up to 50 per cent. of the water mains are more than 100 years old and, astonishingly, 30 per cent. are more than 150 years old. London is not unique; many other parts of the country, such as Greater Manchester, have water and sewer mains that are more than 100 years old. This is not only the case for water. Gas mains are frequently more than 100 years old, and the majority are more than 50 years old. The majority of electricity mains cables are more than 50 years old, as are some telephone cables.
	Given the age of much of this apparatus, it needs to be replaced, or, given growing demand, upgraded. This is not always easy on our busy modern roads. The New Roads and Street Works Act 1991—or NRASWA, as my hon. Friend catchily calls it—requires local authorities to co-ordinate all works on the highway to minimise the inconvenience to road users, promote safety and protect the street. Statutory undertakers such as utility companies have to co-operate with local authorities and each other. The 1991 Act also requires utilities to notify works, carry them out safely and reinstate them properly so that the highway can be returned to use.
	In April this year, we brought in stronger powers for local authorities to co-ordinate works. They include longer periods of notice for major works to allow better co-ordination, clearer powers on directing when works can or cannot take place and longer restrictions on works by utility companies following roadworks—up to five years following major reconstructions and up to three years following resurfacing. All other substantial roadworks may be followed by a 12-month restriction. The powers also include the fact that a highway authority may now impose a restriction following major works by a utility company, restricting further work on the street by any utility company for up to 12 months. Fixed penalties for certain offences, mainly the failure to provide timely and accurate notices, have been available to authorities since May as an alternative to prosecution.
	The Traffic Management Act 2004 also provided new powers for authorities to operate a permit scheme that allows them to control works in the highway proactively, subject to the approval of the Secretary of State. Permit schemes apply to the highway authority's own works as well as to those by utility companies. There have already been consultations on two such schemes, the London common permit scheme and the Kent permit scheme. The Department received applications for the London common scheme from 14 London boroughs and Transport for London in July. No decisions have been made on the current applications.
	In 2001, the Department for Transport introduced powers for highway authorities to charge utility companies—they are usually known as section 74 charges—when their works take longer than agreed. That has resulted in better estimates from utility companies of the duration of works, which in turn increases authorities' ability to co-ordinate works and helps them to comply with their network management duty. The co-ordination code of practice, published by the DFT as statutory guidance in July 2007, stressed the importance of co-ordination for longer-term planned works anything up to five years away, but more usually two years away. That allows authorities and utility companies to adjust the timing of works so that utility works take place before a road is resurfaced by an authority, or so that road closures can be shared.
	The 2004 Act placed a network management duty on local authorities, requiring them to do all that is reasonably practicable to manage the network effectively and keep traffic moving. That statutory duty reflects the importance placed on making best use of existing road space for the benefit of all road users. That strengthens the need for co-ordination of works, so that the same street does not have a series of works by different utility companies or the local authority over an extended period. Authorities and utility companies are encouraged to co-ordinate works where possible, so that they can share traffic management such as temporary traffic lights or one-way operations, even if the works are not in the same trench.
	However, emergency repairs will always be needed for burst water or gas mains or to ensure that supply is restored to households and/or businesses. In Staffordshire, the highway authority has worked with utility companies and its own highways management team to co-ordinate works that, if carried out separately, would take many weeks. It is succeeding in reducing the time for which the highway is occupied. One example, on the A449, involved a gas main replacement and major resurfacing. If carried out as separate works they would have lasted 25 weeks. Instead, all work was completed in 12 weeks, with traffic management, temporary signals and one-way closure organised to maximise traffic flow.
	Similarly, in London, Bishopsgate, a vital artery in the City, was closed for a weekend in March to allow a bridge for the East London line to be lowered into place. Transport for London used the opportunity to allow 10 different works promoters to carry out works at 25 separate sites in Bishopsgate. That removed any impact on weekday traffic that several separate works would have had.
	Utility companies are required to make good or reinstate the highway after they have carried out works. When possible, they are encouraged to do that immediately after the works, which is known as first-time reinstatement. If that is not possible, due to inappropriate weather conditions for materials to set or the unavailability of specialist finishes, the utility company can make a temporary or interim reinstatement to allow the highway to be safely returned to use as quickly as possible. The permanent reinstatement is then carried out within six months. Local authorities can carry out inspections to ensure that sites are safely laid out and that the reinstatement is to the appropriate standard immediately after it has been done and is still adequate two years later, just before guarantee expires.
	Utility companies are investing in developing innovative ways of working to minimise the amount of excavation that needs to take place or reduce the duration of works when they are maintaining or upgrading apparatus. For instance, gas and water companies are placing plastic pipes inside existing pipes rather than excavating a trench along the entire length of the mains. The most important thing is that the reinstatement is suitable for the level of traffic using the road and that deterioration does not take place. The 2004 Act provides new powers for local authorities to require those undertaking the work, such as utility companies, to resurface a street following works, but those powers have not yet been commenced. Their implementation will require new affirmative regulations and a statutory code of practice on how the powers can be exercised. Discussion with key stakeholders, especially local authorities and utility companies, will need to focus on the circumstance in which the powers could be exercised by local authorities; the extent of resurfacing that would be appropriate; whether a requirement to resurface a particular street could be placed on several utility companies; whether a financial payment could be made instead of resurfacing, and how that would be calculated; and when and how local authorities contribute to the cost of resurfacing by a utility company.
	Careful consideration needs to be given to how the provisions in the 2004 Act should be delivered to ensure that there are no unintended consequences that adversely impact on either the travelling public or the customers of the utility companies. We prioritised our 2004 Act programme after we listened carefully to the views of our key stakeholders, who are, as I have mentioned, the local authorities, utility companies and their contractors. We keep in close touch with our stakeholders' opinions and if they have a strong view that we need to change our priorities, we will take that into account.
	Implementation of the 2004 Act with regard to works on the highway by utility companies initially focused on the changes to the powers to co-ordinate and direct when works may or may not take place, and those regulations came into force in April. The next phases are revising the inspections regime—to ensure the safety of works and the quality of reinstatement—the safety code of practice and how records of buried assets are recorded and shared with others. Those important areas of work have been given priority, as inspections will help to ensure that works are carried out to the appropriate standard and improved records of buried assets will ensure that excavations are carried out in the right place and that the risk of damage to other people's assets is minimised, along with the risk to workers and the general public.
	Department for Transport officials continue to work closely with the local authorities, utility companies and others to ensure that the regulations and statutory guidance are proportionate and practical. However, we need always to remember that regulations alone are not enough. As the examples I cited from Staffordshire and London show, early communication can deliver benefits for authorities, industry and more importantly, the general public—the customer common to both authorities and utilities—through reduced congestion and the reliable provision of water, energy and communication.
	Good relations at both a working level, to deal with day-to-day issues, and, more strategically, to share good practice, are essential for the effective management of street works by all parties. The Department must work—and will continue to do so—with the whole sector to help build the right relationships for an effective, pragmatic approach to co-ordinating these essential works that will deliver the outcome needed: the minimised impact of works on road users and the provision of reliable essential services.
	I conclude by again congratulating my hon. Friend on securing the debate. I know that he, like his Labour colleagues, will continue to ensure that the new arrangements work as well as possible, and I commend him on that as well.
	 Adjourned accordingly at twenty-one minutes to Eleven o'clock.